Economics Terms and Healthcare History

Topics: Health care, Economics, Health economics Pages: 6 (921 words) Published: October 11, 2014
Economics Terms and Health Care History1

Economics Terms and Health Care History
Cecile Delos Santos
Professor Mark Williams
February 10, 2014

Economic Terms and Health Care History2

The healthcare economics have changed so much over the years. The changed was because of the evolutionary changes that happened in the United States which cause the dramatic change in the economics medical technology. One of the main reasons that moves all things are by health care economics is the money and the money help keeps an organization to established and be stable and it is the key to success. One way that the organization is using to help run the business is the cash flow system. It run the business and somehow help in making a decision in the future and also learning the healthcare economics. “Economics is the science that deals with the production, distribution, and consumption of goods and services or the material welfare of human kind.” (Getzen & Moore, 2007).

There are some factors that contributed to the evolution of healthcare and these are technology and medical advancement. If somebody understand the flow of funds and the health care economics started, it will be easier task of planning for the future. Like what I mentioned earlier it’s the money is the driving force at health care economics. In the past most people paid privately for health care. The funding began over the years that come more from the health care insurance. That way the individuals are only paying a portion of the cost of the health care insurance the private insurance will pay the rest. (Getzen & Moore, 2007)

The United States technology change because of the supply and demand and new technology system are continuously upgrading and updating to help the increasing population in United States. Before our time people who needs to be treated by a doctor will trade things that they own in exchange for the payment of the health service, they did not have any money or they couldn’t afford the cost of the health care services. There are times the doctors would trade treatment for some things such as cotton, livestock, grain and jewelry as the patient form of Economic Terms and Health Care History3

payment. These doctors were tradesmen, the patient was paying one hundred percent cost for health care services rendered. As the United Stated progress with the technology and other historical factors, such as The Great Depression, a new health care system was made to aid the American population in purchasing medical services. Microeconomics and Macroeconomics

Microeconomics is how the individuals and organizations make a decision on how to allocate the resources that are available so by allocating the resources they can meet their own or the consumer demands. Macroeconomics is the general population or the health care system as a whole, rather than the individual consumers or organizations. Both Microeconomics and Macroeconomics explained that the supply and demand of the population. Microeconomics concentrate on the product costs in any given market. Macroeconomics explain the price of the product that are sold. Macroeconomics are influenced by inflation, consumer consumption and employment rates.

In Microeconomics, the individual that need medical are but do not have health care insurance may continue the treatment until it finish. The health care system that can assist this individual are through Medicaid or Medicare. However Microeconomics affects Macroeconomics. For the patient or the organization with the demands that are not met, the whole system becomes stained.

Economic Terms and Health Care History4
Gross Domestic Product
Gross Domestic Product are consists of total market value of all services and goods that produced during the specific period of time....

References: Getzen and Allen 2007, Healthcare Economics
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